It Makes No Sense

As I write this, the unemployment rate in the country is hovering close to 10%. I could go look up the exact number, but it's about 10%, and that's good enough for this blog. During the Bush years, when everything was horrible according to the media, unemployment dropped to less than 5%, which is considered full employment. What did George W. Bush, who's not very smart, according to the media, do nearly right away? He lowered taxes. One could make a compelling argument that the Bush tax cuts were at least partly responsible for the economic recovery following 9/11.

Now we have a really smart President, at least according to the media, in Barack Obama. What does this super smart awesome guy plan to do in the midst of 10% unemployment? He plans to raise taxes in 2011. That's right, he's going to let at least some of the Bush tax cuts expire for the higher income brackets. Now before you lecture me on civics, I know that the Congress passes legislation so Congress could extend the tax cuts and is choosing not to so far. However, with no pressure from El Presidente, Congress has chosen not to act. Presidential pressure goes far...after all that's why it's called Obama-care, even though Congress technically passed the legislation.

In addition to letting the Bush tax cuts expire, all of us who get company paid health care will begin to face a tax on our health benefits in 2011, as part of the Obama-care package of joy. That's another new tax...which we should be happy about according to our really great President.

I admit, I'm no economist, but I can think a problem through. We have 10% unemployment, and we still have a sluggish economy. Next year, the government is going to start taking a bigger piece of everyone's income (or at least those that actually pay taxes). So, they will start taking a bigger cut of 53% of the country's income (thank you liberal policies). These people will be forced to spend less because they will have less. That means that businesses will have to make cuts to survive, which will probably lead to higher unemployment as businesses lay off people to survive the lean times. Since less people will be working and businesses will be making less money, that means the government could actually take in less tax income, even with the higher tax rates.

You know, I think the media might be exaggerating how smart our President is. It seems to me that his economic policies are designed to actually make the economy worse. I would bet we could see 12-15% unemployment and the dreaded "double-dip" recession if these policies are allowed to go on unchecked. Maybe our current President should check his ideology at the door and take a lesson from his predecessor. You don't raise taxes in lean economic times, you lower them to get the economy going again. But then again, I've never done any community organizing, so what do I know?